Vedanta's CopperTech Metals targets $3.6 billion valuation in US IPO
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Signage is seen at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., November 11, 2022. REUTERS/Andrew Kelly
June 23 (Reuters) - CopperTech Metals is targeting a valuation of up to $3.57 billion in its U.S. initial public offering, joining a wave of companies tapping the busy summer IPO market.
The U.S.-domiciled copper and cobalt producer is seeking around $423.5 million by offering 23.5 million shares priced between $16 and $18 apiece, it said on Tuesday.
The IPO market has picked up pace after a brief lull in March as buoyant stock markets and strong investor appetite have created a more favorable backdrop for new listings.
E-bike startup Lime, silver miner Sinda, digital infrastructure firm ITG, and Italian technology firm Bending Spoons also launched their U.S. IPOs this week.
Vedanta Resources, owned by Indian billionaire Anil Agarwal, launched CopperTech Metals last year. CopperTech owns and operates Konkola Copper Mines in Zambia.
The offering comes as CopperTech plans to spend $2.7 billion over the next five fiscal years to ramp up copper production at Konkola to an average of roughly 270 kilotonnes per annum from fiscal 2030.
"Mining companies are tapping capital markets at a time when metal prices are at historically high levels," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
"Investors are looking for metals that fit within the AI infrastructure theme, and benefit from data center buildouts. CopperTech highlights this heavily in its prospectus."
Demand for copper is surging, underpinned by the rapid expansion of AI infrastructure, grid modernization and electrification.
Vedanta has invested over $3 billion in Konkola and held majority ownership since 2004. It regained control of Konkola in July 2024 after Zambia's previous administration of former president Edgar Lungu seized the asset in 2019.
Citigroup and Cantor are joint book-running managers. CopperTech will list on the NYSE under the symbol "CUX."
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Diti Pujara and Tasim Zahid)
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